Global insurer Allianz has expanded its entertainment insurance business to mainland China and Hong Kong, to serve a niche in the region's booming film and performance industry.

In late March, the insurer launched new insurance products to cover new film and television productions and event cancellations in Asian markets. The products are now available in the mainland and Hong Kong. They compensate for possible damages to actors, equipment, decorations, costumes and other emergencies that may increase the cost, the company said.

"Asia shows a great demand for entertainment insurance due to the growing number of live events as well as a growing interest of Chinese investors in Hollywood," said Mr Michael Furtschegger, who leads the global entertainment business of Allianz.

Chinese conglomerate Dalian Wanda Group acquired US-based Legendary Pictures in 2016. Domestic internet giant Alibaba Group also announced it would cooperate with Steven Spielberg in film production, distribution and investment.

After the US, China is the world's second largest film market, four times bigger than third-placed Japan, according to the Motion Picture Association of America.

From January to March, China's cinema box office revenue grew by 39.8% year-on-year to more than CNY20.2 billion (US$3.25 billion), reports China Daily.

In 2017, the revenue reached more than CNY55.9 billion, up by 13.45% year-on-year, compared with about CNY17 billion back in 2012.

Through the Film Industry Promotion Law enacted in March 2017, China encourages insurance companies to develop products that can support the development of the film industry. It also encourages financial security instruments that can provide guarantees and cooperation with insurers, to spread risk in film production.